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Stock market: Sudden fall & weak baht (update)

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Baht weakening (& improvement for exporters) after foreign investment money pulled out of Thailand & sent back to US with US credit rating improvement. 

The benchmark Stock Exchange of Thailand index fell to the day’s trough of 1,447.65 points, down by 5.3%, before paring losses and closing at 1,452.63 in brisk trade worth 64.9 billion baht. (Photos: Patipat Janthong)

Update: "The continuing outflow of short-term foreign capital is useful in terms of monetary policy, and has helped stabilise the policy and exchange rates, Finance Minister Kittiratt Na-Ranong said on Wednesday. He said the outflow had made it unnecessary for government to impose other available measures to stabilise the baht at this time (Source: Breaking News 12 Jun 2013 at 14.06)

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STOCK MARKET

SET swoons on US news

SET index the worst performer in the region
12/06/2013
Post Reporters

Thai shares plummeted 4.97% on Tuesday, the largest single-day percentage drop this year, on fund repatriation after the US received a credit outlook upgrade from Standard & Poor's, boosting the odds that the Federal Reserve will taper its stimulus in the coming months.

The benchmark Stock Exchange of Thailand (SET) index, the worst performer in the region, fell to the day's trough of 1,447.65, down 5.3%, before paring losses and closing at 1,452.63 in brisk trade worth 64.9 billion baht.

The broad index has slid 11.6% since its closing peak this year on May 2.

Foreign investors were net sellers of 5.48 billion baht, raising their net sales to 45.8 billion since May 23, when Fed chairman Ben Bernanke said the US central bank will ease its asset purchases if the economic recovery is sustained.

Disappointment over the Bank of Japan leaving its stimulus unchanged also kept the market on edge and hobbled most Asian bourses.

The baht's pullback is a clear sign of capital outflow. The currency fell to an eight-month low of 30.95/97 to the US dollar. Thai bonds were under foreign selling pressure with net sales of 500 million baht.

Bank of Thailand governor Prasarn Trairatvorakul blamed the sharp decline in Thai stocks on fund repatriation after S&P raised its US credit outlook from negative to stable.

"Fund flows out of Thailand are not a concern now, as the amount is still minimal compared with recent capital inflows and the country's foreign reserves," he said.

However, investors should be cautious, as foreign exchange rates could be more volatile.

SET president Charamporn Jotikasthira agreed with Mr Prasarn's remarks, saying Thai shares slipped in line with those of Indonesia and the Philippines.

He said the US is in clear recovery mode, and investors have sold equities and bonds to raise cash for US markets.

"Investors need to keep a close watch on liquidity," he said.

The SET index could continue sinking, but Thai listed firms have hardly been affected, as their fundamentals remain unchanged, so investors should not panic.

China's disheartening economic data and fears of further currency weakness in Asia have compelled foreign players to unload emerging-market assets, said Mr Charamporn.

Therdsak Thaveeteeratham, a senior vice-president of Asia Plus Securities, said fund outflows could continue albeit at a slower pace after offshore investors yanked more than 40 billion baht out of the Thai stock market since May 21.

Thanachart Securities strategist Adisak Phupiphathirungul recommends a "wait and see" approach until the foreign sell-off subsides.

"Foreigners are redeeming their investment in the region and no longer care about sound economic fundamentals," he said. "They only want to sell Thai shares at any price."

Kamoltun Pornphaisarnvichit, analyst manager at GT Wealth Management, said a survey of gold traders revealed expectations that gold prices will move in a range of US$1,340 to $1,460 an ounce in the second half of this year, with domestic prices seen at 18,500 to 21,000 baht per baht-weight.

"Domestic gold prices increased last month with the weakening of the baht, but the global price remains depressed by negative factors," he said, adding that gold is expected to give lower returns than savings, bonds and equities. 

(Source: Bangkok Post, STOCK MARKET, SET swoons on US news, SET index the worst performer in the region, 12/06/2013, Post Reporters, link


Stock Market Vocabulary

stocks - หุ้น
stock market - ตลาดหุ้น

Federal Reserve (Fed) - the central bank of the US (See Wikipedia)
Fed chairman Ben Bernanke

central bank - the main central bank in a country that lends money to banks and controls the amount of loans (credit) and money in the economy  ธนาคารแห่งชาติ (See Wikipedia)

Standard & Poor's (S&P) - one the main credit ratings agency (See Wikipedia)

credit - loans เครดิต เงินกู้
credit rating - a measurement of the ability of a company, person or government to pay back the money they borrowed (debts) 
credit rating agency
- a company that tracks credit ratings as a service

trough - 1. the lowest point; going down for a short time; 2. a low area or indentation to put water or food in ราง, รางน้ำ
the day's trough

The benchmark Stock Exchange of Thailand index fell to the day’s trough of 1,447.65 points.

swoon - faint; when a person falls down suddenly from a sudden emotion
SET swoons on US news

index - index numbers เลขดัชนี
stock market index - share index; average price of a set of shares, comparing over time shows if value of shares is rising or falling (See Wikipedia)
SET index -
the main stock index for Thailand's stock exchange SET (See Wikipedia)
 
benchmark - a standard for comparison; a standard that other things can be compared to and measured by เกณฑ์มาตรฐาน, เกณฑ์เปรียบเทียบสมรรถนะ, การวัดเปรียบเทียบสมรรถนะ

the benchmark Stock Exchange of Thailand index
benchmark Stock Exchange of Thailand (SET) index

the worst performer - the one that did the worst
the worst performer in the region

the region - Asean countries
SET index the worst performer in the region

plummet - fall by a large amount suddenly (ราคา) ที่ร่วง หรือลดลงมากอย่างรวดเร็ว
Thai shares plummeted 4.97%

fund - money provided for something เงินทุน กองทุน
repatriation - bring or send something back to your country การส่งกลับประเทศ
fund repatriation - sending money back to your country (when foreign investors take their money out of a country)

outlook - what people think will happen in the future; how good or bad things it seems things will be in the future ภาพรวม อนาคต อนาคตที่คาดไว้
credit outlook

upgrade -1. raised to a higher and better status or level; 2. improve; make new, modern, and up-to-date
credit outlook upgrade
credit outlook upgrade from Standard & Poor's

fund repatriation after the US received a credit outlook upgrade from Standard & Poor's

boosting - increasing เพิ่ม
odds -
how likely something is to happen (probability, likelihood, chance of happening)
boost the odds that ... - making it more likely that ....

taper - reduce slowly
stimulus - temporary increased government spending to get a slow economy moving and growing again
taper the stimulus

the Federal Reserve will taper its stimulus

Thai shares plummeted 4.97% on Tuesday, the largest single-day percentage drop this year, on fund repatriation after the US received a credit outlook upgrade from Standard & Poor's, boosting the odds that the Federal Reserve will taper its stimulus in the coming months.

pare -
reduce, cut off 
paring losses
- reducing losses (that have already occurred)

brisk - move quickly
trade - the buying and selling of things การค้าขาย
brisk trade - people buying and selling quickly (so lots of buying and selling)

The benchmark Stock Exchange of Thailand (SET) index, the worst performer in the region, fell to the day's trough of 1,447.65, down 5.3%, before paring losses and closing at 1,452.63 in brisk trade worth 64.9 billion baht.

broad - wide กว้างๆ
the broad index

slid - fell, decreased
the broad index slid 11.6%

peak - highest level ช่วงเวลาที่พบมากที่สุด
closing peak - the highest index at the daily close of the stock market
the closing peak this year was on May 2

The broad index has slid 11.6% since its closing peak this year on May 2.

net - in accounting a net amount of money is the amount that remains when nothing more is to be subtracted, remaining amount ซึ่งเหลือหลังหักค่าสิ่งอื่นแล้ว
net sellers
net sales

the US central bank will ease its asset purchases

asset
- something owned by a person, company etc., particularly money and property ทรัพย์สิน
asset purchases

ease - reduce; make less severe or extreme บรรเทา ทำให้ง่าย
ease its asset purchases

recovery - when the economy improves, gets better and starts growing again after a downturn or recession การฟื้นฟูสภาพ
economic recovery

sustained - continueing without stopping ต่อเนื่อง  ประคองไว้
economic recovery is sustained.
sustained economic recovery

Foreign investors were net sellers of 5.48 billion baht, raising their net sales to 45.8 billion since May 23, when Fed chairman Ben Bernanke said the US central bank will ease its asset purchases if the economic recovery is sustained.

disappointment - being sad about something
disappointment over ...

on edge - nervous and worried (about what will happen next)
kept the market on edge

hobble - make so cannot walk anymore, make lame or handicap (example: a horse was hobbled)
bourse - stock market
hobbled most Asian bourses

Disappointment over the Bank of Japan leaving its stimulus unchanged also kept the market on edge and hobbled most Asian bourses.

clear - easy to see
sign
- something that shows you that something is true
clear sign - an easy to see sign

capital - investment money; money invested in a business
capital outflow - invesment money going out of the country
clear sign of capital outflow

pullback - going backwards after going forwards (rising after falling)
baht's pullback - when the baht rises in value after falling

The baht's pullback is a clear sign of capital outflow.

currency - a widely used the money accepted for exchange of goods in an economy เงินตรา (See Wikipedia)
The currency fell to an eight-month low of 30.95/97 to the US dollar.

pressure - a force causing change ความกดดัน
under selling pressure
under foreign selling pressure

bond - the borrowing of money from many investors (bondholders) by a company or government พันธบัตร, ใบหุ้นกู้, ตั๋วเงินคลัง
Thai bonds were under foreign selling pressure with net sales of 500 million baht.

sharp - strong ที่รุนแรง sudden large movement
sharp decline in Thai stocks

fund repatriation - sending your investment money back to your country

negative - bad ที่เป็นด้านลบ
stable - not changing suddenly or a lot, not likely to fall or suddenly become worse คงที่, มั่นคง ไม่เปลี่ยนแปลง

S&P raised its US credit outlook from negative to stable

Bank of Thailand governor Prasarn Trairatvorakul blamed the sharp decline in Thai stocks on fund repatriation after S&P raised its US credit outlook from negative to stable.

concern - a worry ความกังวล
not a concern now

foreign reserves - the amount of foreign currency or gold held by a national bank, which is used for dealing with the national banks of other countries เงินสำรอง
the country's foreign reserves

minimal - very small in amount น้อยที่สุด, น้อยมาก
the amount is still minimal compared with .. -

Fund flows out of Thailand are not a concern now, as the amount is still minimal compared with recent capital inflows and the country's foreign reserves.

cautious - careful to avoid danger ระมัดระวังไม่ให้เกิดขึ้น
cautious investors

volatile - changing quickly and unpredictably, the public does not know how to react and plan for the future  ที่เปลี่ยนแปลงได้ง่าย เปลี่ยนแปลงอย่างทันทีทันใดและโดยคาดการณ์ไม่ได้ moves by large amounts suddenly เปลี่ยนแปลงอย่างทันทีทันใดและโดยคาดการณ์ไม่ได้
volatile exchange rates

However, investors should be cautious, as foreign exchange rates could be more volatile.

slipped - fall, decrease
shares slipped

in line
with - following, agreeing with
Thai shares slipped in line with those of Indonesia and the Philippines

SET president Charamporn Jotikasthira agreed with Mr Prasarn's remarks, saying Thai shares slipped in line with those of Indonesia and the Philippines.

recovery - economic recovery (when the economy is getting better)
mode - a way of operating วิธีการ, วิถีทาง
recovery mode

clear - easy to see & understand
in clear recovery mode

equities
- stock shares in a company that represent partial ownership of the company หุ้น
investors sold equities

cash - money เงินสด
raise cash - to get money to do something (borrow or sell off assets you have, liquidate assets)

He said the US is in clear recovery mode, and investors have sold equities and bonds to raise cash for US markets.

liquidity - the amount of cash and loans available สภาพคล่อง
Investors need to keep a close watch on liquidity.

sinking - decreasing, falling
the SET index continues sinking

fundamentals - the capacity to do something, basic capabilities that make something possible; the underlying health of a company or economy (that will determine whether it is profitable and survives in the long-run) ที่สำคัญ ที่เป็นตัวกำหนดความมั่นคงของบริษัท

the fundamentals remain unchanged

panic - a sudden intense uncontrollable fear; a sudden strong feeling of fear and confusion ความหวาดวิตก
investors should not panic

The SET index could continue sinking, but Thai listed firms have hardly been affected, as their fundamentals remain unchanged, so investors should not panic. 

data - facts or information used for making calculations or decisions ข้อมูล
economic data

disheartening - making you sad
China's disheartening economic data

currency weakness - when a country's money is less valuable than other countries (so exports cheaper and more competitive)
fears of further currency weakness in Asia

compel - force
compelled foreign players

unload -
get rid of, sell
unload emerging-market
assets

compelled foreign
players to unload emerging-market assets

China's disheartening economic data and fears of further currency weakness in Asia have compelled foreign players to unload emerging-market assets, said Mr Charamporn.

players - participants in an industry; an important company, person, or country in an industry ผู้ค้าคนสำคัญ หรือผู้ค้ารายใหญ่
assets - things owned, especially property and money สินทรัพย์

pace - the speed and rhythm of something ท่างทำนอง ย่างก้าว จังหวะ ที่สิ่งต่างๆ ดำเนินไป
a slower pace
fund outflows continue at a slower pace

albeit - but,although, though
fund outflows could continue albeit at a slower pace

Therdsak Thaveeteeratham, a senior vice-president of Asia Plus Securities, said fund outflows could continue albeit at a slower pace after offshore investors yanked more than 40 billion baht out of the Thai stock market since May 21.

approach - a way of doing or dealing with something การจัดการกับปัญหา วิธีการทำให้ถึงจุดหมาย
a "wait and see" approach - meaning: don't do anything now, "wait to see" what will happen in the future

sell-off -
when many people are all selling something at the same time
the foreign sell-off -
when all the foreigners are selling something at the same time

subside - go down, when something ends or stops 
when the foreign sell-off subsides

Thanachart Securities strategist Adisak Phupiphathirungul recommends a "wait and see" approach until the foreign sell-off subsides.

investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
redeeming their investment
foreigners are redeeming their investment in the region

sound - in good condition; healthy แข็งแรง
sound economic fundamentals

"Foreigners are redeeming their investment in the region and no longer care about sound economic fundamentals," he said. "They only want to sell Thai shares at any price."

range - between two numbers
a range of X to Y
move in a range of X to Y

gold prices will move in a range of US$1,340 to $1,460 an ounce

traders - people who buy and sell (trade) assets or securities (stocks, bonds) and derivatives ผู้ค้าหุ้นและหลักทรัพย์
gold traders - people of companies that buy and sell gold as a business

survey - 1. asking people what they think about some issue; 2. a summary and sampling of a large subject
a survey of gold traders

revealed - made known or showed somthing that was surprising or that was previously secret เปิดเผย
a survey of gold traders revealed expectations that

expectations - การคาดคะเน
a survey of gold traders revealed expectations that

domestic - within the country ภายในประเทศ
domestic prices

baht-weight - the measure of gold by weight used in Thailand
domestic prices seen at 18,500 to 21,000 baht per baht-weight

Kamoltun Pornphaisarnvichit, analyst manager at GT Wealth Management, said a survey of gold traders revealed expectations that gold prices will move in a range of US$1,340 to $1,460 an ounce in the second half of this year, with domestic prices seen at 18,500 to 21,000 baht per baht-weight.

global - throughout the world; all over the world, including the whole world ทั่วโลก, ทั้งโลก
the global price

factors - the different things that affect the outcome of a situation, event, or decision ปัจจัย
negative factors

remains - not changing, still the same
depressed -
low; lower than usual
remains depressed

the global price remains depressed by negative factors

returns - the amount of money made from an investment
lower returns

expected - believe will happen คาดว่า (จะเกิดขึ้น)
gold is expected to give lower returns than savings, bonds and equities.

"Domestic gold prices increased last month with the weakening of the baht, but the global price remains depressed by negative factors," he said, adding that gold is expected to give lower returns than savings, bonds and equities.

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